The psychology is the deciding factor. Every time. Can't stress enough how significant the psychology is.
The strategy is there but the discipline also has to be there. The mind is a tricky fellow. Not always the best of friends.
I got up late. Wanted to be up by London open but... forget to put the alarm to on.
The signal was there at London open but I was an hour late. A strong downtrend in progress.
Stupid mind looks and says, "Oh it's a strong trend. It's okay to enter now."
Yes, it would be if the strategy was to stay in for a while with a wide stop.
But that isn't the strategy which is to catch a breakout for 5 pips with a tight stop.
I may have to smack my mind around a bit so it becomes a good trading partner.
So I entered short.... mind saying, "It's only 5 pips. It'll go."
It is the mind. it is not the strategy.
This is the battle. Not just for me but I think for everyone who is trying to be successful at this.
So, yes it is strong downtrend, but now it has gone into consolidation.
So I exited with a 5 pip loss.
I have all day to find proper signals and 2 winning trades will erase the loss for a net gain.
The consciousness has to be right.
The strategy is there but the discipline also has to be there. The mind is a tricky fellow. Not always the best of friends.
I got up late. Wanted to be up by London open but... forget to put the alarm to on.
The signal was there at London open but I was an hour late. A strong downtrend in progress.
Stupid mind looks and says, "Oh it's a strong trend. It's okay to enter now."
Yes, it would be if the strategy was to stay in for a while with a wide stop.
But that isn't the strategy which is to catch a breakout for 5 pips with a tight stop.
I may have to smack my mind around a bit so it becomes a good trading partner.
So I entered short.... mind saying, "It's only 5 pips. It'll go."
It is the mind. it is not the strategy.
This is the battle. Not just for me but I think for everyone who is trying to be successful at this.
So, yes it is strong downtrend, but now it has gone into consolidation.
So I exited with a 5 pip loss.
I have all day to find proper signals and 2 winning trades will erase the loss for a net gain.
The consciousness has to be right.
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